CBN Cuts MPR to 26.5% Amid Disinflation and FX Stability

On February 19, 2026, the Central Bank of Nigeria (CBN) announced a reduction in the Monetary Policy Rate (MPR) from 27% to 26.5%, a decrease of 50 basis points. CBN Governor Olayemi Cardoso attributed this decision to ongoing disinflation and stability in foreign exchange rates.

The country’s gross external reserves rose to $50.45 billion as of February 16, 2026, marking the highest level in 13 years and providing 9.68 months of import cover. Cardoso disclosed that 33 banks successfully raised additional capital, with a total of N4.05 trillion verified as of February 19, 2026.

The decision to cut the interest rate was praised by various organizations, including the Nigeria Employers' Consultative Association (NECA) and the Centre for Promoting Private Enterprise (CPPE), who urged the CBN to continue supporting the real economy. The CBN retained the standing facility corridor around the MPR and kept cash reserve requirements unchanged.